Master Circular on Matters relating to Exchange Traded Derivatives

CIR/DNPD/7/2010 · 2010-12-31 · SEBI

Summary

This part of the document serves as the cover page and table of contents for SEBI's Master Circular on Exchange Traded Derivatives dated December 31, 2010. It establishes that the circular consolidates previous regulations and includes a sunset clause requiring replacement by December 30, 2011. The text lists the recipients as Managing Directors or Executive Directors of derivative segments of stock exchanges and their clearing houses. This section outlines the regulatory framework for Stock Options and Currency Futures, detailing product design specifications such as underlying assets, trading hours, and settlement mechanisms. It establishes comprehensive risk management measures including initial margin computation, portfolio-based margining, and exposure limits for clearing members. Additionally, it mandates surveillance systems, position limit monitoring, and specific eligibility criteria for exchanges, clearing corporations, and trading members. This section outlines the product design and eligibility criteria for index futures, specifying underlying indices and weightage requirements. It defines trading hours between 9 AM and 5 PM and establishes minimum contract values of Rs

Text

The Securities and Exchange Board of India has, from time to time, issued various circulars regarding Exchange Traded Derivatives.

This master circular seeks to consolidate all the applicable circulars issued on the subject as on date.

This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on December 30, 2011 and be replaced by an updated Master Circular on the subject on that date.

This Master Circular is available on SEBI website at www.sebi.gov.in, under the category “Derivatives-Circulars”.

Initial margin or worst scenario loss

Real Time Computation

Margin Collection and Enforcement

Liquid Net Worth and Exposure Limits of a Clearing Member

Bank Guarantees

Securities

Reporting and Disclosure

Unique client code

Source: SecMarx — Master Circular on Matters relating to Exchange Traded Derivatives. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.